Alta Adds Title Insurance Endorsements To Combat Seller Impersonation

The American Land Title Association (ALTA) has released two new title insurance policy endorsements aimed at protecting homeowners from seller impersonation fraud — in which criminals forge documents to sell property they do not own and keep the proceeds.

The endorsements provide coverage for both new and existing homeowners, offering post-policy protection against forgery of a deed or mortgage.

With the coverage, title insurers would cover legal costs needed to correct public records if fraudulent documents are filed against a property.

“With criminals harnessing advanced technology to perpetuate sophisticated seller impersonation schemes against unsuspecting homeowners, new products like the policy endorsements are needed to keep the American Dream of homeownership intact,” said Chris Morton, ALTA’s CEO. “These endorsements set the standards for forgery protection before and after closing, and build upon ALTA’s landmark Homeowner’s Policy of Title Insurance.”

The FBI’s Internet Crime Complaint Center reported $174 million in real estate sector losses from cyber-enabled crime in 2024.

“EquityProtect supports the additional protections that are being introduced by the title industry,” said EquityProtect CEO Ryan Marshall. “They are absolutely a step in the right direction. That said, we now need to examine how these changes will be implemented and if they are enough to create real impact.

“Under these new policies, will the major underwriters reach out to past clients and property owners? Will they review title chains to confirm that the policies tied to new endorsements remain enforceable? And most importantly, what will the cost structure look like?”

ALTA says the average title insurance fraud or forgery claim costs more than $143,000.

In addition to the new endorsements, ALTA updated its Best Practices framework — recommending stronger identity verification in closings, additional training for staff, tighter controls over notary and signing agent selection and protocols for responding to suspected fraud.

“These policy endorsements set a new bar for how to help consumers address these crimes,” said Elizabeth Blosser, ALTA’s chief strategy, communications and innovation officer. “If purchased, they should provide peace of mind to homeowners by offering long-term protection from a risk that is both real and increasing.”

The association also released a video and infographics to educate homeowners about seller impersonation fraud.

“I am optimistic that the industry will continue to develop strategies that will help tackle fraud,” said Marshall. “But as the situation unfolds, we continue to recommend that homeowners pursue expanded policies for all future and prospective purchases wherever such coverage is available to make sure their properties are protected.”